When Will Agilyx ASA (OB:AGLX) Breakeven?

With the business potentially at an important milestone, we thought we'd take a closer look at Agilyx ASA's (OB:AGLX) future prospects. Agilyx ASA engages in the chemically recycling of difficult-to-recycle post-use plastic streams. The kr2.8b market-cap company posted a loss in its most recent financial year of US$16m and a latest trailing-twelve-month loss of US$20m leading to an even wider gap between loss and breakeven. As path to profitability is the topic on Agilyx's investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.

See our latest analysis for Agilyx

According to the 4 industry analysts covering Agilyx, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2023, before generating positive profits of US$9.9m in 2024. Therefore, the company is expected to breakeven just over a year from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 66% is expected, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving Agilyx's growth isn’t the focus of this broad overview, however, bear in mind that by and large a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing we’d like to point out is that The company has managed its capital judiciously, with debt making up 10% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

There are key fundamentals of Agilyx which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Agilyx, take a look at Agilyx's company page on Simply Wall St. We've also compiled a list of relevant aspects you should further examine:

1. Valuation: What is Agilyx worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Agilyx is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Agilyx’s board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.